Raymond James, a leading financial services provider, has been making headlines recently due to the company’s latest stock acquisition by Davis Investment Partners LLC. According to the Securities & Exchange Commission (SEC), Davis Investment Partners LLC purchased 13,816 shares of Raymond James during the fourth quarter, valued at approximately $1,567,000. This investment accounts for about 0.8% of Davis’ portfolio and is now its 19th biggest position.
This news follows Raymond James’ recent announcement of a quarterly dividend that will be distributed to investors on July 17th. Shareholders who are recorded by June 30th will receive a dividend of $0.42 per share, totaling an annualized yield of 1.77%. With a payout ratio currently sitting at 22.13%, this dividend represents excellent value for investors looking for solid returns.
However, it’s not all smooth sailing for Raymond James as COO Jeffrey A. Dowdle recently sold 5,281 shares of the company’s stock in a transaction on June 7th. These shares were sold at an average price of $96.36 each, equating to a total value of $508,877.16. Following this sale, Mr Dowdle now holds just over 48k shares in Raymond James valued at $4,655,537.04.
The transaction was disclosed in a legal filing with the SEC and represents around 9.46% of the stock owned by insiders.
Overall though, this news is positive for both Raymond James and its shareholders alike – with strong earnings history and sound financials underpinning their investments in growth opportunities whilst maintaining sufficient funds available as reserves if needed going forward into Q3/Q4 for fiscal year ’20-’21 ending September.’
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Investor Interest in Raymond James Financial Inc. (NYSE:RJF) Remains Strong Despite Mixed Q1 Results
Raymond James Financial, Inc. (NYSE:RJF) is a financial services provider that specializes in investment banking, asset management and wealth management. Despite a recent dip in earnings due to missed expectations in the first quarter, a number of large investors have modified their holdings of the stock. Covestor Ltd raised its stake by 77.1%, while RFP Financial Group LLC purchased new shares worth $35,000. Dupont Capital Management Corp and Accurate Wealth Management LLC have also acquired positions, as has Atlas Capital Advisors LLC. Hedge funds and other institutional investors own 74.77% of the company’s stock.
Several research analysts recently issued reports on Raymond James’ stock including StockNews.com, which initiated coverage with a “hold” rating for the company. Citigroup cut their price objective from $130 to $100, while Morgan Stanley lowered its target from $121 to $114 and Jefferies Financial Group reduced its price objective from $136 to$112. Five research analysts have rated the stock as “hold”, while three rate it as a “buy”, putting the consensus rating at “Hold” with an average price target of $116.86 according to Bloomberg.com.
Raymond James recently announced a quarterly dividend payment on 17th July with shareholders receiving a $0.42 dividend if they were recorded on Monday 3rd July making an annualized yield of 1.77%. With an opening share price of $94.77 this represents a market cap value of approximately $20 billion for Raymond James.
Whilst Raymond James net margin was down from last year’s figures, it still posted a net profit margin of over 14% and return on equity remains strong at just under 18%. The business also had revenue of almost $3 billion despite missing some Q1 targets.
Overall, Raymond James is managing to weather market volatility well with many large investors including hedge funds increasing their positions in the company. Its capacity for strengthening and expanding its wealth management services bodes well given recent reports of potential growth within the personal finance and investment banking sectors.